Report: Deduction costs Oklahoma millions

Posted: Sunday, December 01, 2002

OKLAHOMA CITY (AP) - The state saw more than $10.4 million less in tax revenue last year as the result of a tax break available for American Indians who work and live on their tribe's land, a published report says.

The Oklahoma Tax Commission did a computer-assisted study of the use of the tribal-income deduction over the past six years at the request of The Daily Oklahoman.

The commission found the deduction was used nearly 500 times on last year's tax returns - exempting $10,482,410 in tribal pay from state income taxes, The Oklahoman reported.

Tax officials added a tribal-income deduction to tax returns after the U.S. Supreme Court ruled on the issue in 1995.

The Oklahoman asked for the study as part of an ongoing look at the impact of Indian gaming on the state.